How do you get out of debt when you are $2,000 in the hole?

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My husband and I have had a rough patch and went almost a month with little to no work which put us in the hole by $ 2,000. Now, he has a good paying job but it pays enough to take care of our present bills not the outstanding debts ie: payday loans. What are some money savy ways to get out of debt? Will payday loan places work with you?
I have two girls and no family or friends to help out with babysitting and daycare costs 300+ a week. I know I worked at a daycare. The rates at daycares are crazy ridculous and the jobs I would be qualified for wouldn’t even pay the daycare costs.

11 Comments
  1. Reply
    Wherwolf
    July 21, 2011 at 12:55 am

    Probably better to go to a real bank and take out a small loan or a line of credit to pay back those Pay Day loan sharks. Then pay off the two grand as you can…those Pay Day places will likely hold a balance with you, at crazy interest. Good luck, debt sucks!

  2. Reply
    Mike D
    July 21, 2011 at 1:26 am

    Payday loan places are usually pretty scummy and probably won’t work with you. Try to work a second job if you can get one (working retail on the weekends, delivering pizzas, deliving packages/loading trucks for UPS) and put all that money towards the loans. Try to live on a written budget. No going out to eat, going to the bar, going to the movies, no shopping sprees, ect. Discipline is the key

  3. Reply
    kate
    July 21, 2011 at 2:15 am

    Payday loans are the final step to being homeless and in hell .
    The rates are loan shark rates and the courts side with them because stupid people sign on the dotted line .

    I got 2 jobs , start waiting tables or whatever and then get a 2nd job .
    Ya , OK , he has a job , now WHAT are you doing ?

    I did not hear about any babies , so get a job and do not let him be carrying this by himself .

    >

  4. Reply
    Gladys C
    July 21, 2011 at 3:01 am

    some of them will just call them and try to work out a schedule with them. you may be surprised.

  5. Reply
    Vince Lethal
    July 21, 2011 at 3:02 am

    There is a guy named Dave Ramsey who writes books on this stuff. Your library might have some of them.

    In a nutshell, he says you need to have a written budget. If your income is not fixed, you prioritize what bills to pay with what you have. And try to save up an emergency fund to deal with surprises.

    Most of what he says is basically spend less than you bring in each month by cutting back on your lifestyle and spending on the bare necessities. That may not help much. But you will never be able to borrow your way out of debt.

  6. Reply
    Susan M
    July 21, 2011 at 3:15 am

    Why are you borrowing more money to get out of debt? That doesn’t work. You need to cut back on your day to day expenses:
    cook at home, from scratch. No vacations until you pay your debts. Don’t charge your future away. Do you want 20% or more of your income to go for interest, which is basicaly for nothing? Learn to save up and pay cash! Your money is your choice, why
    be poor and in debt for your entire life?

  7. Reply
    ricangel
    July 21, 2011 at 3:50 am

    Try and call the company and see if you can pay monthly

  8. Reply
    James Watkin
    July 21, 2011 at 4:17 am

    You turn the cable off. You eat leg quarters and rice and beans and cheap food to save. You hang the towels on a clothes line to dry to save on drying. You have your kids bag it for lunch and the hubby. You play games at home with the kids for entertainment. You unplug everything that doesn’t need using, even plugged in draws some electricity. You drink tap water in place of costly drinks. You tighten, tighten, tighten. And you be upfront with the kids and make a game out of who can save the most energy, like keeping lights off when not in use,etc.

  9. Reply
    2n2222
    July 21, 2011 at 4:23 am

    You must take a job of some sort and use the entire income to pay off the payday loan people. That is the best use to which you could put it; it’s the equivalent of putting it in a very high-paying stock or bond. Pay down that debt and then continue to put all your pay into a bank account that you will not touch. You must keep at least two month’s income as an emergency fund in order to prevent a similar ‘rough patch’ from getting you into so much trouble again.

    Then put yourselves on a budget, removing from your life such money-sinks as restaurants, lottery tickets, instant-messaging and the more expensive cell-phone stuff. Get a reliable used car; most family financial troubles start with a sick automobile.

    You pretty much know what to do in this regard. You’ll just have to do it.

  10. Reply
    PFS rep
    July 21, 2011 at 5:06 am

    You already have the answer, cut back on what is not NEEDED. Get a part time job on husband’s off shift.

    NEVER go to payday loan places. None of them are good. They are designed to keep you there paying them every 2 weeks that you cannot pay them off fully. Don’t go there, don’t even acknowledge their existence.

    You will catch up little by little.

    Good luck with it. Anyone can do it you just need to concentrate.

  11. Reply
    Sad Girl
    July 21, 2011 at 5:49 am

    I work as a Personal Banker and I can tell you right now that payday loans are a vicious cycle that is very very hard to get out of. They have high interest as well. I would recommend that you try to obtain a personal loan from your bank or a credit card to cover the $ 2,000. Since you are the primary caretaker of your kids, can your husband supplement the income by taking a second job until the $ 2,000 is paid off? You might also look into getting a part time job where you can work when he is home from work so he can watch the kids. Have you considered working at a Target or walmart as they are open late? I suggest do anything you can to get out of the payday loan cycle, even if it means great inconvenience of second jobs, moving to a cheaper place, selling off assets (cars, furniture, jewelry), or asking family for help. Good luck.

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